Transcript Government, Trade, Business & The Environment

Identifying Root Causes of
Hunger: Government, Trade,
Business and the Environment
Peter A. Stanwick
Department of Management
Auburn University
President’s Response to Hunger
• “Great peaceful crusade” to give
the world’s under-developed
areas vigorous strength to combat
hunger and disease.
• He proposed expanded trade,
technical assistance and loans to
help raise economic levels.
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President’s Response to Hunger
(Continued)
• Ways should be found to bring
more involvement of private
investment.
• This “crusade” would raise
barriers against tyranny and the
war which tyranny breeds.
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President’s Response to Hunger
(Continued)
• Ways should be found to bring more
involvement of private investment
• This “crusade” would raise barriers
against tyranny and the war which
tyranny breeds.
President Dwight D. Eisenhower
November 10, 1958
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Government and Trade Policies
• Move Toward Biofuels
• Climate Change
• Government, NGO and Private Sector
Partnerships
• Funding of Civil Wars
• Impact of Fair Trade
• Business Relationships
• What can be Done?
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Inefficient Use of Oil
• Industrialized agriculture uses 50 times
more energy than traditional farming
methods
• It takes the equivalent of 6 barrels of oil
to raise a single cow to market.
• It takes 10 calories of oil energy to
produce one calorie of food.
(Source: Steve Brooks. “Time Running Out for
Hungry Ones as the World Watches and Waits”.
The Western Mail. June 26, 2008)
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BioFuels
• 82% rise in food commodity
prices from 2006 to 2008 is
directly related to shifting farm
land to biofuel commodities.
• The net result is that an
additional 260 million people
were driven to hunger due to
biofuels investments.
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BioFuels
• Farmers are subsidized by the United
States government and by the
European Union.
• In 2007, US subsidy was $16 billion.
• In 2007, EU subsidy is $18 billion.
• Aid to farmers in developing countries
in less than $4 billion
(Source: Ashley Seager. “260M Driven Into Hunger by Push for
Biofuel-ActionAid.” The Guardian. July 3, 2008.)
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BioFuels
• Accounted for almost 50% of the
growth in global demand for major
food crops in 2007.
• In 2008, 1/3 of the corn produced in
the United States went for ethanol
production.
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Climate Change
Climate Change
• Of the 37 identified countries which
have hunger/famine issues, 22 had
suffered significant adverse
weather conditions which resulted
in the loss of crops and/or seeds.
• Climate Change had a direct and/or
indirect impact on these adverse
weather conditions.
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Climate Change
Climate Change could:
• Reduce by 50% rain fed crops in Africa
by 2020.
• Put 50 million more people at risk of
hunger.
• Have 1 billion people in Asia having
water shortages due to melting
glaciers.
(Source: CBC News. “Countries Abusing Human
Rights by Failing to Fight Global Warming
"Oxfam. September 9, 2008.)
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Climate Change
• Approximately 3 billion people use
primitive stoves fueled by crop
waste, wood, coal and dung to cook
their food.
• Smoke from the fires kill 1.9 million
people annually from lung and heart
diseases and low birth rates.
• The stoves produce millions of ton of
soot that increases global warming.
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Climate Change
• Soot or Black Carbon is the
number 2 contributor to global
warming after carbon dioxide.
• Soot particles warm the air and
melt the ice by absorbing the
sun’s heat when they settle on
glaciers.
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Impact of Soot
• Soot may account for up to half of the
Arctic warming.
• Soot can travel great distances.
• Himalayan glaciers are expected to
lose 75 percent of their ice by 2020.
• These glaciers are the source of most
of the Asian rivers.
• Short term result will be widespread
flooding.
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Using a primitive stove in
Koluha, India
Dung Cakes
Pollution From Cooking Fires
Global Alliance for Clean
Cookstoves
• Goal to provide 100 million cleanburning stoves in villages in Africa,
Asia and South American by 2020.
• Have approximately $60 million in
funding from governments, aid
organizations and the private sector.
Of the $60 million, $50 million was
given by the United States
government.
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20 Founding Partners
• The Global Alliance for Clean Cookstoves include: The United Nations
Foundation, Shell Foundation, U.S. Department of State, U.S.
Environmental Protection Agency, World Health Organization (WHO),
German Federal Ministry for Economic Cooperation and Development
(BMZ), Deutsche Gesellchaft für Technische Zusammenarbeit (GTZ),
Morgan Stanley/Morgan Stanley Foundation, UN-Energy, World Food
Programme, UN Environment Programme (UNEP), UN Industrial
Development Organization (UNIDO), U.S. Agency for International
Development (USAID), U.S. Department of Energy, U.S. Department of
Health and Human Services (National Institutes of Health; Centers for
Disease Control and Prevention), UN High Commissioner for Refugees,
SNV Netherlands Development Organization, Shell, Government of Peru,
and the Government of Norway
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Global Alliance for Clean
Cookstoves
• WHO says that soot is the fourth
greatest health risk factor in
developing countries after unclean
water and sanitation, unsafe sex
and undernourishment.
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Global Alliance for Clean
Cookstoves
• Use an entrepreneurial model in
which small local companies would
manufacturer or buy the stoves and
would take into account local
differences in fuel choices, food
consumption patterns and methods
of cooking.
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Global Alliance for Clean
Cookstoves
• Stoves cost $20 and most are solar
powered.
• Those that are not solar powered
use fuel more efficiently by first
pulverizing the fuel and then adding
a small fan to improve combustion
of the materials.
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Global Alliance for Clean
Cookstoves
• The stoves do not last for a long time.
• The are produced at a low cost and a
high volume.
• They will need to be replaced every
three to five years.
• Therefore, the small businesses will
have a perpetual business making
and/or selling the stoves.
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Funding of Civil Wars:
Blood Diamonds
• Conflict or “Blood” diamonds are
diamonds which have been mined in
areas where there is a civil war and
the proceeds of the diamond sales
have been used to purchase military
arms.
• Prolonged civil wars only increase the
number of people in that country who
do not receive food on a daily basis.
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Challenges of West African Nations
• West African countries such as Sierra
Leone, Congo, Angola and the Ivory
Coast have diamond deposits which
are a few feet from the surface,
usually in marshy areas in river bets.
• Very easy for rebel forces to quickly
seize diamond operations.
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Negative Impact of Blood Diamonds
• Approximately 4 percent of all diamonds
sold in the 1980s and 1990s were
considered conflict diamonds.
• Al Qaeda used the illegal diamond trade
to lauder millions of dollars.
• Wars funded in Africa by diamonds
resulted in 3.7 million deaths and 6
million people being displaced from their
homes.
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Fair Trade Products
• Fair trade means that farmers have
received a fair wage for their work
through the higher prices that were
charged for the product.
• In the United States, Fair Trade
products are available at 16 national
retailers, including Sam’s Club,
Kroger, Wegman’s, Whole Foods
Market (www.transfairusaa.org)
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Fair Trade
• Underlying questions:
– Where does the additional money for every
pound of coffee go?
– What about the fixed rates for pounds of
coffee?
• For example, Costa Coffee took advantage of
the Fair Trade image by adding 18 cents to
every cup of coffee, even though fair trade
coffee only cost them between one and two
cents extra per cup
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NGOs Partnerships
• Map International provides an electronic and
mobile banking platform for the people of
Uganda.
• Goals include: providing 2 million people in
Uganda with access to bank accounts.
• Enroll up to 600,000 government employees
with direct deposit.
• Expand across the country so that people can
securely retrieve and transfer money.
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Private Sector Partnerships
(UNDP Business Call to Action)
• Cadbury developed the Cadbury Coca
Partnership to encourage coca developed in
Africa, Southeast Asia and the Caribbean.
• The partnership develops sustainable
farming for the local communities.
• Creates new sources of income in 100 coca
farming communities.
• Addresses key factors such as child labor,
health, gender diversity and environmental
sustainability.
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SABMIller
• Develop and improve local supply
chains for barley around the world.
• Promote sustainable livelihoods for
small barley farmers in developing
countries.
• Establish centers throughout key
barley-growing regions to provide
farmers with certified seeds,
agricultural skills training and technical
assistance.
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Thompson Reuters
• Help Indian farmers improve their
productivity and remove barriers to
growth.
• Provide up to 250 million farms with
information to improve yields, reduce
market inefficiencies and increase
incomes.
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Can One Person Make A Difference?
• In 1984, Bob Geldof, lead singer of the group
The Boomtown Rats, was watching a BBC
documentary on the famine conditions in
Ethiopia.
• On November 24, 1984, he and some
friends recorded a song in one day.
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Can One Person Make A
Difference?
YES
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